ECON-UA 1 Lecture Notes - Lecture 4: Business Cycle

• School: New York University
• Department: Economics
• Course: ECON-UA 1
• Professor: Lieberman

Document Summary

Econ ua 1 - lecture 4 - unemployment rate. Percentage of able workers who are available but not employed. Unemployment rate and concept of willing and able to work is very subjective. Critique of measurement: leaves out some people who are truly unemployed a. 1 hr is enough to be employed, so babysitting is employment: discouraged people, about 3. 3 million i. Those who want a job but aren"t looking because they are discouraged about finding one: distorts changes in true unemployment over the business cycle (i. e. boom, bust) a. b. In recession, rise in unemployment underestimates true rise in unemployment.